UK Services Sector Posts Three-Month High With Restrictions Eased

Source: IHS Markit

Service providers in the United Kingdom posted a three-month high in terms of business activity growth in October, driven by the reopening of the economy and easing of restrictions. EWU is flat premarket.

• The headline seasonally adjusted IHS Markit/CIPS UK Services PMI Business Activity Index stood at 59.1 in October, up from September’s 55.4.
• The latest reading is the fastest growth recorded in three months since July.
• Growth was attributed to the rising business and consumer spending during the month, as local and international restrictions were eased.
• Strong demand was reported in the hospitality, leisure, and transportation sectors. Staffing was down in some firms as they were poached by competitors.
• Operating expenses posted a steep growth during the month, with most of the firms reporting a rise in cost burdens mainly due to higher wages.
• Higher expenses were also due to energy, fuel, raw materials, transport, and staff.